The KwaDukuza municipality (KDM) has incurred an astonishing R237.7-million in energy losses during the previous financial year.
That staggering amount was revealed in the fourth quarter budget assessment tabled in a special council meeting last Tuesday.
Blowing past the R181-million lost in 2020/2021, the figure equates to just shy of R20-million per month lost to illegal connections, cable theft and suspected mismanagement of infrastructure.
It means that almost 25% of all electricity income for the municipality was lost last year, more than double the upper range of the national average for energy losses, which is between 8 and 12%.
Elsewhere in the performance report, a budget underspend of R237-million and revenue under-collection of R133-million were recorded.
These numbers are both partially owing to the timeline for the fourth quarter report, as some income and expenses are only recorded in the following month and are not reflected.
In terms of the budget underspend, the main differences from the budget are R30.5-million in expected employee costs as a result of unfilled positions, R14.3-million to depreciation and R90.6-million in bulk purchases.
The bulk purchases underspend is actually an overspend of R17-million if one includes the electricity purchases for the last month of the year, totalling R107-million.
In terms of under-collection, property rates reflect a negative variance of R37.9-million, partially owing to valuation roll objections, while transfers and subsidies reached R12.8-million, with electricity revenue totalling R73.3-million.
Electricity billing only reflects in the following month, and when included, the under-collection becomes an over-collection of R10.7-million.
There was also an underspend in the capital budget, with only R220-million (70%) of the budgeted R316-million being spent.
In her address on the year’s performance, KDM mayor Lindile Nhaca chose to focus on the positive infrastructure upgrades undertaken, while berating opposition councillors for the chaos in council.
The breakdown of the council meeting on July 28 is what forced the special council meeting in the first place.
“It highlighted the weaknesses and desperation of certain political parties who just don’t have a desire to deliver services to the people, but who simply want to preside over political grandstanding, as if that would make any difference to the toiling masses of people who are in need of services,” said Nhaca.
The mayor also responded to a letter from Democratic Alliance caucus leader Tammy Colley after the council breakdown, calling for an investigation into what happened.
“Under normal circumstances, her request to discuss any matter in a council committee should be in the form of a motion but I had strongly considered the seriousness of the matters which she had brought to my attention,” said Nhaca, agreeing to have a multi-party investigation within the executive committee.
Nhaca closed by observing a positive increase in tourism activities with the hosting of the Ballito Pro and KwaDukuza Winter Fair, while outlining upcoming infrastructure projects.
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